Volvo Makes Profit Progress, But Sales Target Looks Elusive.
“we anticipate that global sales will peak at around 707,500 by the end of the decade, still a far distance from its goal,”
Volvo, which is launching the V90 estate car at the Geneva Car Show, expects record profits this year after tripling earnings in 2015, but is unlikely to reach its ambitious global sales target of 800,000 by 2020.
Swedish based and Zhejiang Geely Holding Group Co of China owned Volvo’s operating profit last year rose to 6.62 billion Swedish crowns (about $780 million). Sales rose to over 500,000.
“We will continue to improve profitability, because we have to do that as we look three or four years ahead when we are to reach our target of 800,000 cars and profitability in line with other premium manufacturers,” said CEO Hakan Samuelsson, quoted by Reuters.
IHS Automotive expects great things from the V90/V90 Cross Country series, which it said will overtake the market leader in this E-segment
Estate category, the Audi A6, although it concedes the A6 versions are late into their life-cycle.
IHS said sales of E-segment estates have been volatile and should reach 181,500 in 2016, compared with a peak of 297,000 in 2006, and have averaged 195,000 in the last five years.
“We also see that sales of such vehicles are likely to slide further in the future and this is likely to be a symptom of the rise in the crossover and posrt utility market,” IHS said in a report.
IHS said Volvo will soon launch a new XC40.
“With these (vehicles) Volvo is aiming for sales of 800,000 globally within the medium term, a goal that would mean it had more than doubled its sales since (being taken over in 2010).
“However, while IHS Automotive sees growth continuing during the next few years, we anticipate that global sales will peak at around 707,500 by the end of the decade, still a far distance from its goal,” IHS said.